The personal consumption expenditures (PCE) price index gained 0.1% in March after rising 0.3% in February, leaving it up 4.2% over the last 12 months compared with a 5.1% annual gain in February.
The unchanged reading in consumer spending last month, meanwhile, followed a downwardly revised 0.1% gain in February. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 6.4 basis points at 4.033%.
“Today’s numbers indicate what the trend has been, which is lower inflation," said Peter Cardillo, chief market economist at Spartan Capital Securities. "It’s still high but it’s something that the Fed needs to take into consideration.” One-month Treasury yields, which spiked higher Thurdsay on rising concerns of a U.S. debt ceiling showdown, dipped 4 basis points to 4.19%.
The yield on 10-year Treasury notes was down 9.1 basis points to 3.437%, while the yield on the 30-year Treasury bond was down 8.4 basis points to 3.673%.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes , seen as an indicator of economic expectations, was at -59.6 basis points.
April 28 Friday 9:18AM New York / 1318 GMT
Price Current Net
Yield % Change
(bps)
Three-month bills 5.03 5.1626 -0.032
Six-month bills 4.8525 5.0547 -0.002
Two-year note 99-180/256 4.0312 -0.066
Three-year note 100-6/256 3.7411 -0.085
Five-year note 99-244/256 3.5103 -0.092
Seven-year note 100-32/256 3.4797 -0.093
10-year note 100-132/256 3.4371 -0.091
20-year bond 101-20/256 3.7967 -0.087
30-year bond 99-40/256 3.6716 -0.084
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 28.75 0.25
spread
U.S. 3-year dollar swap 17.25 0.75
spread
U.S. 5-year dollar swap 7.75 0.25
spread
U.S. 10-year dollar swap 0.50 0.50
spread
U.S. 30-year dollar swap -41.75 0.75
spread
(Reporting by David Randall; Editing by Kirsten Donovan)
